Global Digital Twin Market By Type (Product Digital Twin, Process Digital Twin, and System Digital Twin), By Technology ( IoT and IIoT, Blockchain, AI and ML, and 5G), By End User, By Region and Companies - Industry Segment Outlook, Market Assessment, Competition Scenario, Trends, and Forecast 2023-2032
- Published date: Nov. 2023
- Report ID: 102617
- Number of Pages: 392
The Global Digital Twin Market size was valued at USD 8.4 Billion in 2022 and is expected to reach USD 918.1 Billion in 2032 growing at a CAGR of 61.8% during the forecast period of 2023-2032.
A digital twin is an online representation of a virtual object that acts as a virtual counterpart to a physical object. It analyzes, predicts, and optimizes industrial assets’ performance using data intelligence and simulation models. The Industrial Internet of Things (IoT) digital twin is an essential component. It enables automated vehicle control and monitoring of industrial resources and processes, such as product development and design, manufacturing planning, investment performance management, and business & operations optimization.
Note: Actual Numbers Might Vary In The Final Report
Digital technologies such as the cloud, big data, and IoT are increasingly used in different business areas. Digital twins are created by virtualizing the physical twin with various IoT sensors and other digital technologies. Although digital twin technology is still in its infancy, the benefits are well-known. The systems could soon play an important role in many current robotics systems if there is more research and development. Digital twin technology is used in many industries, including the aerospace industry. The robotics industry finds digital twin technology particularly useful because of its high reliability and accuracy. Digital twin technology is also used extensively in military, aerospace, biomedical and automotive applications.
- In 2022, the Global Digital Twin Market was valued at USD 8.4 Billion.
- The market is estimated to reach USD 918.1 Billion in 2032 with a CAGR of 61.8% between 2023 and 2032.
- The growth of the digital twin market is being driven by the increasing adoption of IoT, big data analytics and virtual reality/augmented reality (VR/AR) technologies.
- The market is also being driven by the growing need to improve operational efficiency, reduce costs, and increase safety in various industries.
- The major application areas of digital twins are manufacturing, healthcare, energy, transportation, and aerospace.
- The key players in the digital twin market are General Electric, Microsoft Corporation, Hitachi Ltd, Dassault Systems SE, Autodesk Inc., SAP SE, Siemens AG, ANSYS Inc, PTC Inc, IBM Corporation, ABB Ltd., Hexagon AB and Other Key Players.
- IoT and IIoT are poised to dominate the technology sector, with substantial growth anticipated throughout the forecasted period.
- In the realm of automotive and transportation, digital twin services are most extensively utilized, positioning this sector as a leader in the digital twin market.
- The digital twin market is being propelled forward by the convergence of Internet of Things (IoT) and Artificial Intelligence (AI).
- North America accounted for 34.6% of the global digital twin market.
- Digital twins can be used to reduce costs by preventing unplanned downtime and by optimizing the use of resources.
- Digital twins can be used to improve safety by simulating and testing potential hazards.
The product digital twin segment is expected to take the largest share over the forecast period. This is due to the growing demand for IoT sensors in the healthcare sector and electronic manufacturing devices. IoT World Today reports that virtual twins are widely used for advanced product twin applications in the healthcare industry. Technology has been used in healthcare to help doctors better understand patients’ illnesses, including the coronavirus effect on the lungs. Technology is projected to continue growing rapidly during the projection period. Extended reality technology and predictive analytics tools have driven manufacturing, automotive and transportation demand.
Process digital twin is anticipated to grow significantly during the forecast period with increased utilization and installation of the digital Twin, which uplifts the workflow management and improves the chain supply. Smart city projects that use the digital Twin help to increase the market for a digital twin. The number and complexity of operations involved in expanding the coordination to collect the information and reducing the cost of the digital twin. This will improve collaboration and increase customer demand.
IoT and IIoT lead the Technology Segment and are Expected to Grow Significantly During the Forecast Period.
The Internet of Things (IoT) and IIoT are revolutionizing the way digital and physical interact. IoT allows for the interconnection and access to intelligence in the physical world. It is also linked with digital twins, digital models almost representing physical counterparts. Two factors plague many operational processes: dissimilar and black-boxed sources of information. These untapped insights are uncovered by IIoT, which ties them together with historical records and real-time data. These twins, as well as the workers connected to them, are crucial for constructing a process lens. This is a system-wide view of an industrial environment.
A process lens can help to drive manufacturing KPIs. Through IIoT-driven predictive insight, one can improve the uptime of one asset on a factory floor. A twin of a production plant can also improve operational visibility and reduce bottlenecks. The connected operational intelligence of diverse assets gives manufacturers the 360-degree visibility they need to remain flexible and agile in today’s shifting markets and changing customer demands. It helps the IoT and IIoT technology dominate during the forecast period.
Note: Actual Numbers Might Vary In The Final Report
The Automotive and Transportation Sector Uses Most Digital Twin Services to Lead the Digital Twin Market.
The automotive and transportation sectors cover most of the market for digital twins. This is due to the introduction of electric vehicles. It also shows the increased use of simulation technology. Engineers can use digital twin technology to monitor various systems and operational data within the vehicle, helping to improve vehicle design and reduce costs. The future trends in the automotive industry are connected to autonomous vehicles and shared mobility. This further increases the use of digital twin technology.
Digital twin technology has been adopted more widely in healthcare due to the COVID-19 pandemic. This allows healthcare professionals to study infected patients’ data and perform treatment simulations. The digital twin feed of the patient is derived from various health data sources such as imaging records, laboratory results, genetic information, and in-person measurements. This will aid during diagnosis.
Internet of Things and Artificial Intelligence are Driving the Digital Twin Market
Digital twin technology is driven by advanced technologies such as the Internet of Things and AI. This helps drive market growth for digital twins with a higher market share. Many organizations have begun to use clouding and the Internet of Things. This technology allows them to gather and integrate data with analysis and study. The Internet of things can be connected to external devices to collect data and analyze the performance of the Internet of Things. It also helps identify potential problems and prevent them from happening again. Digital twins can improve the product’s productivity and overall performance. This helps to drive the digital twin market during the forecast period.
Many enterprises are focusing on clouding and the Internet of Things to increase the adoption of the technologies to improve the digital twin’s market share. Increased solutions and an improved economy will help in achieving this goal. Greater government support and enhanced provision for developing new technologies in the digital twin will also help to increase research and develop technologies to improve the product’s productivity and manufacturing.
Privacy and Lack of Skills are Obstructing the Digital Twin Market Growth
Advanced technologies such as cloud computing and the Internet of Things are all part of the digital twin. This resulted in a higher cost for the digital twin and a lower market growth rate due to less customer demand. The market growth rate was also reduced, with a low revenue share during the forecast period.
The procedure of digital twin involves installing software-developed technologies into the system. This requires new skills. The market for the digital twin was halted due to a lack of skills. The market for digital twins saw a decrease in revenue share due to people with lower skills and fewer data collection. To perform the procedures, the digital twin needs an internet connection. The connectivity is widely used with increased deployment services and improved production and manufacturing. The market for digital twins may be less competitive with insufficient connectivity. This could lead to lower production.
Research and Development have Created Many Opportunities in the Digital Twin Market.
Digital twinning involves real-time data analysis. This includes developing components, assembling, and improving the plant’s manufacturing process. This involves early detection of problems and the ability to increase operations. It also helps expand the digital twin market over the forecast period. The advancement in research and technology has allowed for the introduction of new services in digital twins. This allows customers to gather information with real-time analysis and improve their demands. This helps to grow the market and increase the growth rate of digital twins. Market players have invested in new technologies to continue growing the digital twins market. This has resulted in a higher revenue share over the forecast period.
One of the most important trends is incorporating digital twin solutions in the healthcare and life science sectors. These solutions are being increasingly used in the pharmaceutical industry to estimate the completion of procedures. This results in fewer real-world and physical tests or process completions. These factors help healthcare professionals in identifying and validating drug applicants. These product twin solutions, currently in development, could be used to personalize healthcare treatments. It is possible to create secure network models and match these twins computationally.
Digital solutions are becoming more common, and key players have been involved in developing digital life science research models. In collaboration with Ecole Polytechnique Federale de Lausannes, Hewlett Packard Enterprise used its supercomputer for digital brain models. The digital twin market will grow due to technological advances and increased demand in the industry.
Key Market Segments
Based on Type
- Product Digital Twin
- Process Digital Twin
- System Digital Twin
Based on Technology
- IoT and IIoT
- Artificial Intelligence and Machine Learning
- Augmented Reality, Virtual Reality, and Mixed Reality
- Big Data Analytics
Based on End-User
- Aerospace and Defense
- Automotive & Transportation
- Energy & Utilities
- Oil and Gas
- Other End-Users
North America accounted for 34.6% of the global digital twin market. This is due to the rapid growth of IoT services and the presence of top IT companies. This region is seeing a rise in demand for technology through strategic partnerships and initiatives by digital twin providers. For example, Capgemini announced a partnership with Microsoft on 12 October 2022 to create ReflectIoD, a cloud-industry-based, serverless Azure-based digital Twin platform. This platform, which is highly scalable and secure, will make use of best-in-class technology and architecture components from Microsoft Azure’s cloud suite to transform organizations’ work and maintenance agility. It will enable intelligent industry and drive long-term business results. The expected growth in automotive industries will also drive market revenue growth.
Due to the rising adoption of the internet, the growing popularity of IoT engineering services, and increased product launches by market leaders, the Asia Pacific market will experience a significant revenue growth rate during the forecast period.
Note: Actual Numbers Might Vary In The Final Report
Key Regions and Countries Covered in this Report:
- The US
- The UK
- Rest of Europe
- South Korea
- New Zealand
- Rest of APAC
- Rest of Latin America
Middle East & Africa
- South Africa
- Saudi Arabia
- Rest of MEA
Key Player Analysis
ABB, AVEVA Plc, Dassault Systemes, and General Electric are the key market players in the global market for 2022. Companies are encouraged to invest in research and development and automation of production processes because of the fierce competition from leading companies for innovative products. Many automotive brands have adopted digital twin technologies to increase customer engagement. These include interactive dashboards for automobiles that can be customized by customers. This allows companies to tap into consumer behavior and makes it possible to modify existing models.
Companies are developing strategies to capitalize on new market opportunities and reach new customers by developing customized products. In December 2021, Dassault Systemes and Renault Group announced a partnership. This partnership would allow Dassault Systemes to use the 3DEXPERIENCE cloud platform to create programs for new vehicles. Renault Group would use the platform to manage its virtual twins for product configurations.
Market Key Players
- General Electric
- Microsoft Corporation
- Hitachi Ltd
- Dassault Systems SE
- Autodesk Inc.
- SAP SE
- Siemens AG
- ANSYS Inc
- PTC Inc
- IBM Corporation
- ABB Ltd.
- Hexagon AB
- Other Key Players
- In March 2022, Microsoft and Newcrest formed an alliance. Newcrest’s mining unit would select Azure as its preferred cloud provider worldwide. Two projects that the two companies are working on together are developing a high-impact sustainability data model and applying digital twins for operational performance.
- In February 2022, A strategic partnership between ANSYS and Amazon Web Services will transform engineering simulations on the Cloud. This collaboration will allow the deployment of ANSYS products to AWS. It will improve the usability of simulation workloads and enable scalability, flexibility, and simplicity with easy access to storage and software solutions from any web browser. ANSYS may integrate the entire AWS infrastructure, including computing and storage services and analytics, machine learning, machine learning, and digital twins.
Report Features Description Market Value (2022) USD 8.4 Bn Forecast Revenue (2032) USD 918.1 Bn CAGR (2023-2032) 61.8% Base Year for Estimation 2022 Historic Period 2016-2022 Forecast Period 2023-2032 Report Coverage Revenue Forecast, Market Dynamics, COVID-19 Impact, Competitive Landscape, Recent Developments Segments Covered By Type – Product Digital Twin, Process Digital Twin, and System Digital Twin; By Technology – IoT and IIoT, Blockchain, AI and ML, AR-VR and Mixed Reality, Big Data Analytics, and 5G; By End User – Aerospace and Defense, Automotive & Transportation, Healthcare, Energy & Utilities, Oil and Gas, Agriculture, and Other End-Users. Regional Analysis North America – The US & Canada; Europe – Germany, France, The UK, Spain, Italy, Russia, Netherlands, and Rest of Europe; APAC- China, Japan, South Korea, India, Australia, New Zealand, Singapore, Thailand, Vietnam, and Rest of APAC; Latin America- Brazil, Mexico & Rest of Latin America; Middle East & Africa- South Africa, Saudi Arabia, UAE & Rest of MEA Competitive Landscape General Electric, Microsoft Corporation, Hitachi Ltd, Dassault Systems SE, Autodesk Inc., SAP SE, Siemens AG, ANSYS Inc, PTC Inc, IBM Corporation, ABB Ltd., Hexagon AB, and Other Key Players. Customization Scope Customization for segments, region/country-level will be provided. Moreover, additional customization can be done based on the requirements. Purchase Options We have three licenses to opt for: Single User License, Multi-User License (Up to 5 Users), Corporate Use License (Unlimited User and Printable PDF)
Frequently Asked Questions (FAQ)What is the value of the global Digital Twin Market?
In 2022, the global Digital Twin Market was valued at USD 10.6 Billion.What will be the market size for Digital Twin Market in 2032?
In 2032, the Digital Twin Market will reach USD 255.7 Billion.What CAGR is projected for the Digital Twin Market?
The Digital Twin Market is expected to grow at 38.6% CAGR (2023-2032).List the segments encompassed in this report on the Digital Twin Market?
Market.US has segmented the Digital Twin Market Market by geographic (North America, Europe, APAC, South America, and MEA). By Type, market has been segmented into Product Digital Twin, Process Digital Twin and System Digital Twin. By Technology, the market has been further divided into IoT and IIoT, Blockchain, Artificial Intelligence and Machine Learning, Augmented Reality, Virtual Reality, and Mixed Reality, Big Data Analytics and 5G.Which segment dominate the Digital Twin industry?
With respect to the Digital Twin industry, vendors can expect to leverage greater prospective business opportunities through the Product Digital Twin segment, as this dominate this industry.Name the major industry players in the Digital Twin Market.
General Electric, Microsoft Corporation, Hitachi Ltd, Dassault Systems SE, Autodesk Inc., SAP SE, Siemens AG and Other Key Players are the main vendors in this market.
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